Visa sees potential in public blockchain networks for automatic recurring payments. The U.S. giant is experimenting with a solution based on the layer2 Ethereum Starknet.
On Monday, Visa published an article titled : “Automatic Payments for Self-Custody Wallets” describing how a solution would allow self-custody wallet owners to set up a system to automatically pay bills.
“In this technical paper, we use a new concept and one of the main proposals from Ethereum developers. It aims to explore how smart contracts can be implemented to provide automated programmable payments,”.
Visa has turned to Starknet, a popular ETH layer2 developed by startup Starwave. “With StarkNet’s account model, we were able to implement our delegable account solution, enabling automatic payments for self-deposit wallets,” .
According to the document, the solution allows, in “a few simple steps,” to set up recurring payments with a utility or subscription provider.
To help our customers and partners innovate, we need to immerse ourselves in technologies that can bring real value to the payments ecosystem. We are focused on building our core competencies in the Web3 infrastructure layers and blockchain protocols that drive crypto development,” commented Catherine Gu, head of CBDC and Protocol at Visa, in a statement.
Like its rival Mastercard, Visa has been exploring the possibilities offered by blockchain technology and digital assets for several years.